Brazil Bans Crypto Compensation for Iris Scans by Tools for Humanity
Brazil’s data protection authority, ANPD, has prohibited Tools for Humanity, a tech firm co-founded by OpenAI CEO Sam Altman, from offering financial compensation for iris scans in the country. The preventive measure, which begins Saturday, also includes compensation provided through cryptocurrencies.
Tools for Humanity’s World Project Under Scrutiny
Tools for Humanity operates the World project, a global initiative aiming to create a universal identity system by collecting iris scans. In exchange, participants receive cryptocurrency and a digital ID. While the company claims its services comply with Brazilian laws, the ANPD expressed concerns that financial incentives could undermine individuals’ ability to freely consent to the collection of their biometric data.
The ANPD also ordered the company to publicly identify on its website the entity responsible for processing personal data.
Previous Data Collection Concerns
This isn’t the first time Tools for Humanity has faced scrutiny. Authorities in other countries, including Spain and Portugal, have also raised concerns about its data collection practices. The ongoing investigation by the ANPD was launched last November, signalling heightened regulatory attention on biometric data usage and privacy compliance.
Response from Tools for Humanity
In a statement, the company said it is cooperating with the ANPD to ensure Brazilians can participate in the World network. It also criticised “inaccuracies” in recent reports and misinformation circulating on social media, suggesting these may have influenced the ANPD’s decision. However, it did not elaborate on the specific inaccuracies.
The case highlights growing global concerns about biometric data collection and the ethical implications of incentivising individuals to share sensitive information in exchange for financial rewards.
With inputs from Reuters
